CAKE → PancakeSwap Bull Breakout! What are the Price Targets?PancakeSwap executed a beautiful bull run and pullback, forming an arched pattern toward the 200EMA where we bounced and broke out! The price is in meander mode toward the upside on new support.
How do we trade this? 🤔
We do not have any signal candles or patterns to suggest the next move, any trade here carries a low probability of profit. If we long, our protective stop should be under the 200EMA which is a fair distance away. If we short, we have the 200EMA acting as potential support and where do we place our stop loss? The proper place is above the previous high of over $2.84, which is a bad Risk/Reward ratio.
We should wait until the price falls to the 200EMA and the RSI comes down closer to 40.00 and starts to cross above the Moving Average. This tightens our stop loss and gives us enough room to 1:2 Risk/Reward our trade.
Until then, let's see how the price action plays out. FOMO (Fear of Missing Out) is your worst enemy. This is where you enter the market prematurely, worried that you'll miss potential profits but instead, you end up in a bad trade. I find combating FOMO is best conceptualized as " You're making more money by not falling for the seduction of market profit ."
💡 Trade Idea 💡
Long Entry: $2.3037
🟥 Stop Loss: $2.1860
✅ Take Profit: $2.5395
⚖️ Risk/Reward Ratio: 1:2
🔑 Key Takeaways 🔑
1. Bull Trend Consolidating Pattern Complete. Bull Breakout.
2. Established New Support, Currently in Uptrend.
3. Wait for Pullback to 200EMA to consider long.
4. Do Not Long until we see Strong Bull Support after Pullback.
5. RSI at 53.00, below Moving Average. Supports Short.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
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